Top 5 CRM Trends to Watch in 2024

As we gear up for 2024, we’re diving deep into the evolving world of Customer Relationship Management (CRM) trends. To offer a comprehensive outlook, we’ve merged our expert agency’s foresight with insights from seasoned professionals featured in our CRM Talks series.

A special thank you to all the contributors who’ve enriched this discussion with their expertise, helping us spotlight the key CRM trends for 2024 and beyond:

Mikhail Dadov, CRM & Loyalty Leader; Alex Andro, CEO at WE2; Stefano Balian, Personalization & CRM Manager at Petlove; Roma Sieradzka, Head of CRM at LOVOO, Maxim Ashitko, Solutions Consulting Manager at Bloomreach.

In an increasingly interconnected business environment, collaborative networking is emerging as a pivotal CRM trend. This approach emphasizes the importance of building robust networks through various mediums, such as interviews, community forums, podcasts, and collaborative articles. A prime example of this is our own ‘CRM Talks’ with guests around the world.

As the global landscape becomes more volatile, the value of social capital skyrockets, proving to be a critical asset in navigating uncertainties. In these rapidly evolving markets, having a network of peers and experts to discuss, brainstorm, and strategize with becomes indispensable. This trend not only fosters collective problem-solving but also encourages personal growth and professional development.

Moreover, the rise of self-branding, particularly among independent consultants, underscores the trend’s significance. It points to a larger movement towards B2B humanization, where personal connections and individual reputations play a significant role in business interactions. By leveraging collaborative networking, individuals and organizations alike can enhance their brand presence, create meaningful connections, and drive forward-thinking strategies in the world of customer relationship management.

Mikhail: “One of my supervisors once shared his observations with me: unlike the community of people in traditional marketing, retention marketing leaders are akin to members of a secret club. We’re known to exist, but we’re rarely seen at events, and we seldom share our successes with the outside world. It seems that in 2023, we began stepping out of the shadows, sharing more about our work, and engaging with the external world.

The upcoming year, 2024, will likely continue this trend, increasing the number of networking groups and expanding the presence of experts in marketing events. Our role is evolving, and we’re gradually becoming more visible on the professional stage”.

As the CRM landscape evolves, a significant shift is occurring toward retention strategies, primarily driven by the escalating costs associated with customer acquisition. This trend is not just a reactionary measure but a strategic realignment, emphasizing the efficient use of first-party data. With Cost-Per-Click (CPC) rates tripling over the last five years and the widespread adoption of ad blockers impacting traditional advertising effectiveness, companies are compelled to reassess their approach toward customer engagement and retention.

Alex: “Lead exchange between businesses, or as I call it, the new P2P scheme in the world of performance marketing.

The problems remain the same and even intensify: CPC has tripled in the last five years, and more than 40% use ad blockers. This questions the effectiveness of businesses using current standard advertising tools. At the very least — it necessitates exploring additional options.

One solution, for instance, if you are a major FMCG brand or business — your task is to find another business player (not a competitor, of course) but with a similar audience, negotiate with them, and offer your unique offer to their audience. For them, it is the monetization of their data and the reduction of acquisition costs. For you: new leads and the opportunity to immediately start direct communication on your behalf, the most excellent part being that the user will most likely already be expecting it from you! Sounds trivial?

But what if I tell you there are tools to do this in streaming mode, fully digitalized, and, most importantly — safe for all parties? If interested — write to me, I’ll tell you more”.

Stefano: “CRM is regaining its prominence. After a period in which it lost some of its relevance amid the rise of social media and ads, cookie restrictions have brought back the need to value and utilize first-party data. This movement is encouraging companies to reposition CRM once again as a strategic asset, rather than just a mere manager of unpaid marketing channels.

Companies are rediscovering the importance of defining a clear value proposition for their CRM strategies and how to re-establish emotional, and therefore more human, relationships with their customers. We’re back to the basics”.

AI is revolutionizing the CRM landscape, transcending traditional boundaries and redefining interactions across customers, providers, and agencies. This transformation goes beyond the implementation of sophisticated algorithms; it’s fundamentally altering market behaviors and expectations.

For customers, AI ushers in an era of hyper-personalization, where experiences are tailored to individual preferences, elevating customer satisfaction to new heights. Providers are leveraging AI to gain insightful analytics, enabling them to make data-driven decisions efficiently. This ‘work smarter, not harder’ approach allows providers to optimize their strategies with precision. Meanwhile, agencies are harnessing the power of AI for predictive analytics, crafting policies and regulations with unprecedented foresight.

This shift represents a radical change in consumer behavior, where instant, customized, and accurate experiences have become the norm. Strategies now need to be more than just transactional; they should resonate on a deeper, more personal level with the audience.

Roma: “The AI revolution is a game-changer across the board for customers, providers, and agencies. It’s not just about fancy algorithms; it’s about transforming how we behave in the market. Customers get treated to personalized experiences, making them feel like kings, while providers get to work smarter, not harder, with AI-driven insights optimizing their game plan. Agencies, on the other hand, are riding the data wave, crafting policies and regulations with a crystal ball-like foresight.

This isn’t just a shift; it’s a seismic one in consumer behavior. Instant, customized, and spot-on experiences are the new currency. As product managers & marketers, our challenge is to ride this wave, tailoring strategies that tap into these shifting behaviors. It’s not just about selling; it’s about resonating. But in this AI whirlwind, ethics shouldn’t take a backseat. Keeping it real and responsible in this tech-savvy landscape is non-negotiable for a sustainable future”.

Mikhail: “I completely agree that AI is currently causing a tectonic shift in the field of retention team operations and CRM marketing agencies. In 2023, we witnessed accelerated processes for image and text preparation in one-time CRM communications. Looking ahead to 2024, I anticipate the emergence of comprehensive solutions on CDP platforms. These solutions will not only encompass the preparation of various communication variants on a given theme but also automate the launch of test mailings, summarize results, and integrate the best practices across the entire customer base. The integration of these advancements will undoubtedly reshape the landscape of CRM strategies and enhance overall marketing efficiency”.

As we move into 2024, the CRM industry faces the challenge of balancing automation with the indispensable human touch. Automation offers efficiency, handling routine tasks and processing large data volumes rapidly. However, it needs more empathy, personalization, and deep understanding that human interactions bring to customer relationships.

The key for businesses is to integrate automation to complement human engagement. Automated systems can efficiently manage initial inquiries but should transition to human representatives for complex or sensitive issues. Companies can use AI and machine learning to predict when human interaction is most beneficial, ensuring personalized customer experiences at critical touchpoints. This strategic blend aims to create a customer experience where technology enhances human connection, fostering loyalty and trust.

Maxim: “I can confidently assert that AI-powered automations will be a cornerstone in achieving this equilibrium in 2024.

In the past few years, the buzz around Customer Data Platforms has been palpable globally. Now, in 2024, as most businesses have successfully integrated CDP solutions, a fresh challenge has emerged — how can we stand out amongst our competitors who are also harnessing similar data sets?

The answer could lie in leveraging AI on top of your data set. AI has the capability to sift through massive volumes of data with greater speed and precision than humans. By harnessing AI-driven insights, teams can gain a deeper understanding of customer behavior and preferences. This can pave the way for a more streamlined, personalized, and efficient customer experience.

Therefore, the question isn’t about choosing automation over human interaction or the other way around. Instead, it’s about effectively merging the two, powered by AI, to enhance customer experience and fuel revenue growth”.

Businesses can foster a more cohesive strategy that resonates across the entire organization by aligning KPIs such as customer satisfaction, retention rates, and other metrics across departments. This unified approach streamlines processes and ensures that every team member understands how their role impacts the customer experience and the company’s overall performance.

Implementing unified analytics also paves the way for greater organizational transparency and knowledge sharing. It encourages different departments to collaborate more closely, sharing insights and data that can lead to more informed decision-making. This environment is particularly beneficial in identifying cross-functional opportunities and challenges, allowing for a more holistic understanding of the customer journey. By adopting this integrated approach, companies can optimize their CRM strategies, ensuring that each department contributes effectively to building stronger, more meaningful customer relationships.

Stefano: “CRM and Product teams are more aligned and closer than ever before. It’s not news that retention needs to be a company-wide effort, but there are still silos that separate the departments. CRM and Product teams sharing the same OKRs and roadmaps, collaboratively building solutions, and sharing customer data will be mandatory. The Product team enhances the customer browsing experience, while CRM maximizes and optimizes this experience. The unity and synergy between these areas will be crucial for retention.”.

These trends collectively represent a comprehensive view of the CRM landscape in 2024, highlighting the importance of adaptability, technological integration, and human-centric approaches in evolving CRM strategies.

1. Collaborative Networking: Underscores the importance of building networks through interviews, community forums, podcasts, and collaborative articles focusing on leveraging social capital.
2. Prioritizing Retention: Driven by rising customer acquisition costs, highlights the strategic shift towards retention, utilizing first-party data.
3. The AI Revolution: AI is transforming CRM across various domains, offering personalized customer experiences, AI-driven insights for providers, and data-driven strategies for agencies.
4. Balancing Automation and Human Touch: Involves integrating automation in CRM while preserving the human element essential in customer relations.
5. Unified Analytics: Focusing on collaboration across different company teams, advocates for common KPIs and dashboards to streamline strategies and improve overall performance.